(Visited 131 times, 1 visits today)
(Visited 131 times, 1 visits today)

doValue asks for changes in the FPS deal due to the pandemic

The Italian group doValue aims to complete the acquisition of the 80% of FPS from Eurobank by the end of May, regardless the Covid-19 pandemic.

Reportedly doValue, following the pandemic and the economic consequences of its restrictive measures, has not requested any adjustment of the agreed price for the acquisition. However, it has raised the issue of modifying individual terms of the agreement, such as the duration of the Eurobank’s NPLs servicing period through FPS and rearranging the timing of management fees, in order to restore the blow that the expected lag in recoveries.

According to the Eurobank-doValue deal, FPS will service all Eurobank’s NPEs and early delay loans for 10 years. FPS is also to manage the recovered real estate assets.

DoValue asks the extension of the servicing period by 12 to 24 months, as a key measure to restore the blow caused by the pandemic. If the request is accepted, it is possible that there will be some modifications.

With the completion of the transaction, the Italian group will pay €248 m for 80% of the FPS, while an earn-out scheme of€ 40 m is expected. The price, as announced, will be financed by a new loan.

The above planning has not changed, but doValue is likely to restructure its lending before the transaction is completed due to the effects of the pandemic on its financial figures.

Original Source: Euro2day

Adaptation/Summary: Kiki Athanasiadis

 

(Visited 131 times, 1 visits today)

Read more:
Real Estate prices in Greece rose by 9.1% in 2019

Residential property prices in Greece, especially in the Attica region, have risen in 2019 at the fastest pace since 2006....

Close